ZENITHEXPO.NS WACC - Weighted Average Cost of Capital

The WACC of Zenith Exports Ltd (ZENITHEXPO.NS) is 11.6%.

The Cost of Equity of Zenith Exports Ltd (ZENITHEXPO.NS) is 11.80%.

The Cost of Debt of Zenith Exports Ltd (ZENITHEXPO.NS) is 7.80%.

	Range	Selected
Cost of equity	10.30% - 13.30%	11.80%
Tax rate	20.40% - 23.00%	21.70%
Cost of debt	7.00% - 8.60%	7.80%
WACC	10.2% - 13.0%	11.6%

WACC

ZENITHEXPO.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.42	0.58

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.30%	13.30%

Tax rate	20.40%	23.00%
Debt/Equity ratio	0.04	0.04
Cost of debt	7.00%	8.60%

After-tax WACC	10.2%	13.0%


Selected WACC	11.6%

ZENITHEXPO.NS's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for ZENITHEXPO.NS:

cost_of_equity (11.80%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.42) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.